Institutional investors continue to shun active equities strategies in favour of fixed income, with allocations to high yield, corporate, and core bond strategies in the US rising fastest.
Value investing could see a revival as economic activity picks up in the wake of the Covid-19 pandemic, as asset managers predict that lowly-rated stocks could outperform in the upturn.
The size and growth of the mutual fund sector in China, combined with recent market liberalisation steps, will lead to more investment managers applying for onshore fund-management licenses, according to Fitch Ratings.
Europe is poised to continue outperforming the US for the rest of the year, according to New York-based global asset manager Neuberger Berman, as uncertainty over the outcome of the US presidential election and the ongoing coronavirus pandemic continue to weigh on markets.
The market capitalisation of the global banking market dropped by 30.32 per cent between the final quarter of 2019 and the second quarter of 2020, according to data from Buy Shares.
FAANGs’ market performance is driving force behind US market achieving positive returns, according to Qontigo
The US equity market is reporting positive returns, but new data from Qontigo shows that this was largely driven by the stellar performances of FAANGs (Facebook, Amazon, Apple, Netflix and Google.
Appetite for ESG funds continued to soar in July as inflows reached record levels for the fourth month running, leaving ESG as one of the only actively-managed fund types to see greater inflows than passive counterparts.
European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors
Concern is growing over a likely spike in defaults among so-called ‘zombie’ companies that have stayed afloat during the coronavirus pandemic by relying on government stimulus and increasing their debt loads, but will struggle to keep servicing loans as government schemes roll back.
The World Federation Of Exchanges calls for considered approach to treatment of CCP equity in resolution
The World Federation of Exchanges, the global industry group for central counterparties (CCPs) and exchanges, has called for a careful and considered approach in any change to resolution arrangements at CCPs, as upsetting the tried and tested balance of incentives could damage stability and increase systemic risk.
Breckinridge sees further tightening in US corporate debt spreads after wild bond market swings in H1
Fixed income managers have seen a hectic first half of the year in 2020. In the US, a typical year’s worth of new issues was printed in the space of just four months, as the onset of the pandemic forced companies to take urgent action to shore up their finances.